13 tax increases for the year 2013
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The government kicked up the taxes this year for some folks, and it is down for others. It all depends on how much money you earned in the year.
For the case of tax increases, we talk about the 13 biggest ones in the article below.
- Death tax increases for estates over $5 million - up to 40% from the previous 35%.
- Top Marginal Tax goes up from 35% to 39.6% for earners over $450,000 married or $400,000 single.
- 3.8% surtax on investments income for people who earn $250,000 married or $200,00 single.
- Deduction of capital purchases by businesses - the end of full expensing - tax on business investment.
- Payroll tax increase of 0.9% for the hospital insurance part of payroll tax for earners above $250,000 married or $250.000 single.
- 2.3% excise tax on medical devices manufactured here or imported and sold in the USA.
- Individual's medical expenses - reduced income tax deduction
- Medicare Part D subsidy related expenses - no longer a corporate income tax deduction.
- Limitation of corporate income tax deduction - compensation to executives from health insurance companies
- 4.2% increase to 6.2% increase on social security tax for every income up to the $113,700 wage ceiling. A $41,000 yearly income will get about $16 less a week. 0.9% withheld for medicare tax for earners over $200,000.
- Personal exemptions for adjusted gross income are gone
for incomes over $300,000 married and $250,000 single.
- Personal exemptions for AGI get phased down for earners at $300,000 married and $250,000 single filers.
- Increase in the rate for dividends and for capital gains - 15% up to current 20% for earners over $450,000 married - $400,000 single.